FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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QUESTION:
Prepare a flexible budget for overheads on the basis of the following data. Ascertain the overhead rates at 50%, 60% and
70% capacity.
Variable overheads:
Indirect material
Indirect labour
Semi-variable overheads:
Electricity (40% fixed 60% variable)
Repairs (80% fixed 20% variable)
Fixed overheads:
Depreciation
Insurance
Salaries
Total overheads
Estimated direct labour hours
At 60% capacity (sh. '000')
3,000
9,000
8,250
2,250
7,500
46,500
93,000
15000
1500
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Transcribed Image Text:QUESTION: Prepare a flexible budget for overheads on the basis of the following data. Ascertain the overhead rates at 50%, 60% and 70% capacity. Variable overheads: Indirect material Indirect labour Semi-variable overheads: Electricity (40% fixed 60% variable) Repairs (80% fixed 20% variable) Fixed overheads: Depreciation Insurance Salaries Total overheads Estimated direct labour hours At 60% capacity (sh. '000') 3,000 9,000 8,250 2,250 7,500 46,500 93,000 15000 1500
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